Renewable diesel segment generates record quarter for Darling Ingredients
Darling Ingredients Inc. reported net sales of $1.2 billion for the second quarter of 2021, compared to net sales of $848.7 million for the same period a year ago. Net income attributable to Darling for the three months ended July 3, 2021, was $196.6 million, or $1.17 per diluted share, compared to net income of $65.4 million, or 39 cents per diluted share, for the second quarter of 2020.
“Our global ingredients business continues to perform at the highest levels producing a record adjusted EBITDA of approximately $222 million for the second quarter,” said Randall C. Stuewe, chairman and CEO of Darling. “We continue to see positive signs of strength in a recovering economy both here in North America and around the world, which should provide for sustained demand for food, feed and fuel, empowering Darling to take advantage of our leadership position in the industry. Darling’s 2021 first half financial performance was strong, as we generated a combined adjusted EBITDA of $638.5 million and with the continued strength of commodity pricing for our global ingredients business expected through the rest of 2021, and the 400 million gallon renewable diesel expansion of Diamond Green Diesel in Norco, Louisiana, starting up in the near term, we are once again increasing our combined adjusted EBITDA guidance for 2021 to approximately $1.275 billion.”
Diamond Green Diesel, Darling’s renewable diesel joint venture with Valero, generated a record quarter, contributing $132 million of EBITDA to Darling. DGD’s 400 million gallon renewable diesel expansion project in Louisiana is on track to be fully operational in middle of the fourth quarter while its 470 million gallon Port Arthur, Texas, renewable diesel project is expected to be complete in the first half of 2023.
Under Darling's current share repurchase authorization, the company repurchased 1.14 million shares of common stock during the second quarter for a total of $75.7 million. Darling has approximately $124.3 million remaining under its current authorization.
For the six months ended July 3, 2021, Darling reported net sales of $2.25 billion, as compared with net sales of $1.7 billion for the same period of 2020. Net Income attributable to Darling for the first six months of 2021 was $348.3 million, or $2.08 per diluted share, as compared to a net income of $150.9 million, or 90 cents per diluted share, for the first six months of 2020.
As of July 3, 2021, Darling had $77.9 million in cash and cash equivalents, and $902.1 million available under its committed revolving credit agreement. Total debt outstanding as of July 3, 2021, was $1.4 billion. Capital expenditures (exclusive of DGD investments) of $126.1 million were made during the first six months of fiscal 2021, compared to $123.2 million in the first six months of fiscal 2020.
Combined adjusted EBITDA was $353.7 million for the second quarter of 2021, compared to $195.2 million for the same period in 2020. On a year-to-date basis, combined adjusted EBITDA totaled $638.5 million for 2021, compared to $408.5 million on a year-to-date basis for 2020.
The company’s trailing 12-month combined adjusted EBITDA surpassed $1 billion for the first time in company history.